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Major Policy Trends

North Carolina Affordable Housing Conference Industry Update Emily Cadik AHTCC Executive Director October 8, 2019 @ EmilyCadik @ AHTCCoalition. Major Policy Trends. Political landscape in uncharted territory Year-end legislative agenda unclear

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Major Policy Trends

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  1. North Carolina Affordable Housing ConferenceIndustry UpdateEmily CadikAHTCC Executive DirectorOctober 8, 2019@EmilyCadik @AHTCCoalition

  2. Major Policy Trends • Political landscape in uncharted territory • Year-end legislative agenda unclear • Bright spot for bipartisanship: Affordable Housing Credit Improvement Act to expand and strengthen Housing Credit • Policy initiatives from the Administration – CRA Reform, Housing Finance reform, and repositioning HUD’s housing stock • Looking ahead to the 2020 elections – and making housing part of the national conversation

  3. The Affordable Housing Credit Improvement Act History 2015 9 percent Housing Credit rate made permanent 2016 AHCIA first introduced by Sens. Maria Cantwell (D-WA) and Orrin Hatch (R-UT) 2017 AHCIA reintroduced by Sens. Maria Cantwell and Orrin Hatch, first introduced in House by Reps. Pat Tiberi (R-OH) and Richard Neal (D-MA) 2017 Housing Credit and Private Activity Bonds preserved in tax reform 2018 12.5 percent Housing Credit allocation increase for four years (2018 – 2021) and income averaging enacted in Consolidated Appropriations Act of 2018

  4. The Affordable Housing Credit Improvement Act AHCIA Reintroduction • Sponsors • S. 1703: Senators Maria Cantwell (D-WA), Todd Young (R-IN), Ron Wyden (D-OR), and Johnny Isakson (R-GA) • H.R. 3077: Representatives Suzan DelBene (D-WA), Kenny Marchant (R-TX), Don Beyer (D-VA), and Jackie Walorski (R-IN)

  5. The Affordable Housing Credit Improvement Act AHCIA Reintroduction • S. 1703 and H.R. 3077 introduced June 2019 • Total Provisions: 27 • 5 new provisions • 4 updated provisions • 2 provisions added to H.R. 3077 only

  6. Key Affordable Housing Credit Improvement Act Provisions

  7. The Affordable Housing Credit Improvement Act Key Provisions: Increasing Production • 50 percent allocation increase phased in over five years (updated provision in S. 1703 and new in H.R. 3077) • Estimated 384,455 additional homes financed • 4 percent minimum Housing Credit rate • At least 66,000 additional homes financed • Expand Multifamily Housing Bond recycling (new provision) • At least 100,000 additional homes financed *Source: Novogradac & Company

  8. The Affordable Housing Credit Improvement Act Potential AHCIA Impact Source: Novogradac & Company

  9. The Affordable Housing Credit Improvement Act Key Provisions • Serving Hard-to-Reach Areas and Populations • Rural areas • Native American communities • Veterans • Extremely low-income households • Better Facilitating Preservation of Existing Affordable Housing • Streamlining and Simplification • Encouraging Cost Reasonableness

  10. AHCIA Support in North Carolina

  11. The Affordable Housing Credit Improvement Act Potential Legislative Vehicles for AHCIA • Temporary tax provisions • Technical corrections to the Tax Cuts and Jobs Act of 2017 • Spending bill

  12. Advocacy & Engagement Resources • ACTION Resources: www.rentalhousingaction.org • AHCIA one-page overview, summary of all provisions, and explanation of differences between the 115th and 116th Congress versions • National, state, and district fact sheets • Cosponsor lists for S. 1703 and H.R. 3077 • AHTCC Resources: www.taxcreditcoalition.org • Help with groundbreakings and grand openings • Sample letters

  13. CRA Reform • OCC released Advance Notice of Proposed Rulemaking in September 2018 • Notice of Proposed Rulemaking expected this fall • Impact on affordable housing • Investment appetite and pricing • Investment footprint

  14. Housing Finance Reform • Treasury and HUD plans released September 2019 • Moving towards ending GSE conservatorship through recap and release • No change to Fannie and Freddie Housing Credit investments at this time • No changes to Housing Trust Fund and Capital Magnet Fund resources at this time • But Treasury plan suggests replacing affordable housing goals with a fee to be appropriated to HUD affordable housing programs • No major housing finance reform legislation expected this year

  15. Trends at HUD • Robust funding for HUD programs • Repositioning and RAD • A growing portion of HUD’s portfolio shifting to public-private partnership model • Underscores need for more Housing Credit resources • Reducing regulations • White House Task Force

  16. Looking Ahead • 2020 elections • Housing as a campaign issue • Expanding Housing Trust Fund • Renter credits • Reducing local regulations

  17. Why We Advocate

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